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Published On: Fri, Jan 23rd, 2015

Dreamworks Animation to cut jobs, costs and films, ‘Kung Fu Panda 3’ next

Dreamworks Animation announced plans Thursday to cut 500 jobs and reduce the number of films it produces over the next three years as part of a “strategic” plan to cut costs and boost profits.

A statement from the studio responsible for blockbuster animated hits such as Shrek said the restructuring would see the company make two films per year instead of three up until 2017.

“The number one priority for DreamWorks Animation’s core film business is to deliver consistent creative and financial success,” DreamWorks Animation chief executive Jeffrey Katzenberg said in the statement. “I am confident that this strategic plan will deliver great films, better box office results, and growing profitability across our complementary businesses.”

"Mr Peabody & Sherman" did find an audience and is credited with the DreamWorks loss

“Mr Peabody & Sherman” did find an audience and is credited with the DreamWorks loss

The move comes after a string of costly box-office flops for the studio in recent years. This summer’s How to Train Your Dragon 2 earned $40 million less than the original at US box offices ($177 compared to $217) on a $145 million budget.

A US$57 million hit for last year’s Mr Peabody & Sherman and a disappointing hit on summer movie Turbo.

The 2012 holiday film Rise of the Guardians also floundered at the box office, hurting the studio’s bottom line. The Los Angeles Times said the movie had seen Dreamworks take an US$87 million writedown.

Dreamworks said the restructuring would see the studio incur a pre-tax charge of US$290 million. The studio said it would now focus on producing six films over the next three years – half of them original, half of them sequels.

Kung Fu Panda 3 was being lined up for March 2016 followed by Trolls in November that year. That would be followed by Boss Baby in January 2017 and The Croods 2 in December.

Larrikins was scheduled for February 2018, before How to Train Your Dragon 3 in June. Dreamworks Animation is the largest independent animation studio in Hollywood.

It was set up in 2000 following the creation of Dreamworks SKG by Steven Spielberg, Katzenberg and David Geffen.

Gobber-How-To-Train-Your-Dragon 2 photo

 

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About the Author

- Writer and Co-Founder of The Global Dispatch, Brandon has been covering news, offering commentary for years, beginning professionally in 2003 on Crazed Fanboy before expanding into other blogs and sites. Appearing on several radio shows, Brandon has hosted Dispatch Radio, written his first novel (The Rise of the Templar) and completed the three years Global University program in Ministerial Studies to be a pastor. To Contact Brandon email [email protected] ATTN: BRANDON

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  1. DreamWorks Animation Stock Tanks, Analysts Raise Liquidity Concerns – Hollywood Reporter | Amazing News says:

    […] Rating Reiterated by Compass Point (DWA)WKRB NewsDreamWorks Animation confirms 500 layoffsL.A. BizThe Global Dispatch -Los Angeles Times -TheStreet.comall 248 news […]

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